The United States and China have agreed to significantly reduce tariffs in the next 90 days, top US officials said on Monday.

The move comes after President Donald Trump signaled that trade talks with Beijing were going well over the weekend.

"We have reached an agreement on a 90-day pause," US Treasury Secretary Scott Bessent told journalists, adding that "both sides will move their tariffs down" 115%.

Bessent continued: "We both have an interest in balanced trade, the US will continue moving toward that."

Beijing, for its part, announced "substantial progress" in trade talks with Washington.

Why does the US have tariffs on China?

Tariffs launched by Trump against Beijing prompted the latter to retaliate, resulting in major price increases for basic goods across the US.

The news saw the US dollar, which has dipped significantly since Trump began his second term in January, rebound somewhat against the yen and the euro.

Despite warnings from economists on the deleterious effect tariffs hikes would have on ordinary Americans, Trump has forged ahead with his trade war.

Targeting rivals like China and allies alike, the tariffs have caused billions of dollars of losses to the US economy and sent stock markets tumbling.

Following the tariff announcements, the Trump administration has sought to create new trade deals with its top partners, including the UK last week.

Edited by: Saim Dušan Inayatullah